Analyst Upgrades

• Disney (DIS) to buy from hold at Wunderlich.
• Pike Electric (PIKE) to outperform from market perform at FBR Capital.
• Kindred Healthcare (KND) to overweight from equal weight at Barclays.
• UBS (UBS) to hold from sell at Canaccord.
• Avery Dennison (AVY) and Take-Two (TTWO) to buy from neutral at BofA/Merrill.
• Mercer (MERC) to outperform from market perform at Raymond James.

Continue reading Analyst Calls: AVY, CSUN, DIS, INTU, KBH, KEY, LEN, NVTL, UBS, USNA ...

Analyst Calls: AVY, CSUN, DIS, INTU, KBH, KEY, LEN, NVTL, UBS, USNA ... originally appeared on BloggingStocks on Wed, 09 Feb 2011 11:50:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) reported dismal Q4 results due to lower demand.
• AMR Corp. (NYSE: AMR) reported a bigger-than-expected Q4 loss, sending shares lower.
• Check Point Software Technologies Ltd. (NASDAQ: CHKP) earnings prospects led to an upgrade.
• eBay Inc. (NASDAQ: EBAY) posted Q4 and full-year results with increased revenue due to a stronger dollar.
• Google Inc. (NASDAQ: GOOG) reported strong Q4 numbers that beat analysts' expectations.
• International Business Machines Corp. (NYSE: IBM) reported better-than-expected Q4 and 2008 earnings.
• Lockheed Martin Corp. (NYSE: LMT) posted strong Q4 results but lowered its 2009 guidance.
• Northern Trust Corp. (NASDAQ: NTRS) shares surged after posting better-than-expected earnings.
• Regions Financial Corp. (NYSE: RF) reported a huge loss due to write-downs and offered a bleak outlook.
• Societe Generale said that it expects to have broken even in the final quarter of 2008.
• Southwest Airlines Co. (NYSE: LUV) posted its second straight quarterly loss due to fuel hedging costs.
• UAL Corp. (NASDAQ: UAUA) reported a huge loss on the erosion in value of oil hedges as prices dropped.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted record Q4 results despite one-time charges.

For more highlights from this week, see Apple, Microsoft, GE, Johnson & Johnson, Harley Davidson and others

Continue reading Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others

Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others originally appeared on BloggingStocks on Sat, 24 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

In the press release, the company announced that "USANA has agreed to withdraw its lawsuit and Mr. Minkow and the FDI have agreed that they will not trade in USANA's stock in the future, will remove information regarding USANA within their control from the internet, and will not publish any further statements about USANA."

Here's what's so messed up about this: USANA had accused Minkow of defamation but, in March, U.S. District Judge Tena Campbell tossed four claims against him, leaving only the allegation of a conspiracy to drive down the stock.

In other words, USANA was unable to demonstrate in court that any of Minkow's allegations were untrue -- and never really rebutted any of them in its PR effort to tar and feather him. But now Minkow will stop telling the public what he believes about USANA. The real loser here is anyone looking to hear another side to the USANA story: potential investors and potential distributors in the company's multi-level marketing business.

Continue reading USANA Health Sciences and Minkow settle lawsuit - a sad day for free speech

USANA Health Sciences and Minkow settle lawsuit - a sad day for free speech originally appeared on BloggingStocks on Tue, 29 Jul 2008 16:00:00 EST. Please see our terms for use of feeds.

Usana founder pulls offer to take company private originally appeared on BloggingStocks on Wed, 16 Jul 2008 17:45:00 EST. Please see our terms for use of feeds.

Usana Health Sciences (NASDAQ: USNA) announced yesterday (subscription required) that the Special Committee of its Board of Directors had unanimously determined that founder, chairman, and CEO Myron Wentz's offer to take the company private at $26 per share undervalued the company, and recommended that shareholders reject it. Mr. Wentz declined to sweeten the offer, and so the deal appears to be dead in the water.

Here's where it gets kind of interesting: back in 2002, Wentz made an offer to take Usana private but then rescinded it, saying that "To allow our shareholders to benefit from any increased value, I have decided to terminate my current effort to acquire Usana's operating assets on the terms previously announced."

A cynic could suggest that Wentz made this latest buyout offer anticipating that it would be rejected as inadequate, given that it was for just over half the stock's 52-week high. Some analysts predicted when the offer was made that it was likely to be rejected. So what did Usana get out of the offer? Since ex-con turned short-selling gumshoe Barry Minkow began accusing the company of fraud last year, the company's stock has fallen precipitously and short interest has soared to more than 50% of the float. The announcement of Wentz's offer ran the stock up by about 20%, probably shaking out a good number of short sellers -- the offer may have helped precipitate a short squeeze, even if that wasn't the intent.

Earlier this week, Usana raised earnings guidance, giving the stock another jolt.

Usana rejects founder's going private offer originally appeared on BloggingStocks on Sat, 21 Jun 2008 17:40:00 EST. Please see our terms for use of feeds.

Usana's Asia Pacific vice president resigns -- why? originally appeared on BloggingStocks on Thu, 19 Jun 2008 17:10:00 EST. Please see our terms for use of feeds.

This post is part of a series on some of the most memorable companies that have disappeared.

In the mid-1980s, Barry Minkow was the toast of Wall Street. His Zzzz Best Carpet Cleaning company, which he started in his garage at age 16, was an overnight success and, by 19, he was a millionaire. Investors flocked to buy stock in the fast-growing company that was earning millions from lucrative restoration projects.

There was just one problem: the restoration projects weren't real, the company was little more than an elaborate Ponzi scheme, and Minkow wasn't making his money cleaning carpets. He was laundering money for the mob. After a Los Angeles Times reporter broke the story on Minkow's fraud, the scheme unraveled and Zzzz Best filed for bankruptcy. Minkow was charged with pretty much every white-collar crime known to man, and he spent seven and a half years in federal prison.

But that's only the beginning of the Barry Minkow story: Minkow attended college from his cell, was paroled early at the urging of the judge who sentenced him, and became a pastor in San Diego -- not far from the scene of his crimes. Using the skills he learned committing fraud, Minkow set about uncovering it and, to date, has helped the FBI and other government agencies bust up more than $1 billion in fraudulent investment schemes: an amount far larger than the crime Minkow perpetrated.

Most recently, Minkow has gained notoriety for his accusations of fraud at leading multilevel marketing companies Herbalife (NYSE: HLF) and Usana Health Sciences (NASDAQ: USNA).

Companies that vanished: Zzzz Best -- if it looks too good to be true ... originally appeared on BloggingStocks on Wed, 11 Jun 2008 12:36:00 EST. Please see our terms for use of feeds.

Continue reading Ex-con raises red flags at Herbalife

Ex-con raises red flags at Herbalife originally appeared on BloggingStocks on Fri, 11 Apr 2008 15:15:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AAR Corp. (NYSE: AIR) posted record third-quarter earnings and revenue.
• Adobe Systems Inc. (NASDAQ: ADBE) posted better-than-estimated first-quarter results and raised its outlook.
• CKE Restaurants Inc. (NYSE: CKR) posted third-quarter results that missed estimates.
• ConAgra Foods Inc. (NYSE: CAG) third-quarter profit surged as strong sales offset commodity prices.
• Darden Restaurants Inc. (NYSE: DRI) beat third-quarter expectations and offered guidance.
• FactSet Research Systems Inc. (NYSE: FDS) second-quarter results beat estimates and it raised its outlook.
• Fortress Investment Group (NYSE: FIG) remained upbeat despite a fourth-quarter loss.
• Guess Inc. (NYSE: GES) record fourth-quarter results beat Wall Street expectations.
• Inter Parfums Inc. (NASDAQ: IPAR) posted better-than-estimated fourth-quarter results and raised its outlook.
• Jabil Circuit Inc. (NYSE: JBL) beat second-quarter expectations but lowered its guidance.
• JC Penney Co. Inc. (NYSE: JCP) lowered its first-quarter outlook on weaker-than-expected sales.
• KB Home (NYSE: KBH) swung to a larger-than-expected first-quarter loss on write-downs.
• Lennar Corp. (NYSE: LEN) posted a smaller-than-expected first-quarter loss.
• Monsanto Co. (NYSE: MON) raised its second-quarter and full-year guidance.
• Oracle Corp. (NASDAQ: ORCL) merely met earnings expectations, sending shares lower.
• Tiffany & Co. (NYSE: TIF) posted better-than-estimated fourth-quarter results and raised its outlook.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted lower-than-expected first-quarter results.
• Walgreen Co. (NYSE: WAG) posted solid second-quarter results, including same-store sales growth.

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Adobe, ConAgra, Lennar, Oracle, Tiffany, Darden and others originally appeared on BloggingStocks on Sat, 29 Mar 2008 15:40:00 EST. Please see our terms for use of feeds.

Usana Health Sciences plunges on poor first quarter originally appeared on BloggingStocks on Fri, 28 Mar 2008 13:42:00 EST. Please see our terms for use of feeds.

Usana (NASDAQ: USNA) closed at $26.94 Thursday.

USNA, a developer and manufacturer of nutritional and personal care products, warned on Q1 results and lowered 2008 guidance.

Jefferies says: "Management attributes the sales shortfall to 1) ineffective promotions, 2) weakening consumer macros and 3) continued fallout from recent negative third party publicity."

USNA overall option implied volatility of 63 is above its 26-week average of 58 according to Track Data, indicating larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Usana volatility elevated prior to lower guidance originally appeared on BloggingStocks on Fri, 28 Mar 2008 09:00:00 EST. Please see our terms for use of feeds.

The Securities and Exchange Commission has reportedly ended its probe of Usana Health Sciences (NASDAQ: USNA), and will not recommend any enforcement action, according (subscription required) to the Wall Street Journal.

Without question, this is a big victory for Usana, which has been the target of criticism from fraudster turned fraud fighter Barry Minkow. Minkow has accused the company of operating an illegal pyramid scheme, lying about the credentials of certain executives and directors, and illegally operating a multi-level marketing business in China while saying that the company had no distributors there on an investor conference call.

It's puzzling that the SEC has ended its investigation -- evidence presented on Minkow's Cheating in China website seems to indicate that Usana does have distributors in china, a lot of distributors in China. The pyramid scheme allegations aside, CFO Gil Fuller's denial of distributors in China seems to have been false.

In an email, Barry Minkow told BloggingStocks that "I respect the Securities and Exchange Commission and how hard they work at prosecuting and uncovering fraud for the public. I have not seen the letter in its entirety so I really cannot comment."

The SEC has decided not to act, but questions still remain. Class-action lawsuits on behalf of distributors are still pending and the allegations of a pyramid recruiting scheme may be more the jurisdiction of FTC regulators. And you also have to wonder why the company's auditor resigned last year.

This is quite a victory for Usana Health Sciences, but given that this is the same SEC that approved Enron's perversion of mark to market accounting, investors should remain skeptical.

SEC ends investigation of Usana Health Sciences originally appeared on BloggingStocks on Fri, 11 Jan 2008 14:45:00 EST. Please see our terms for use of feeds.

Usana Health Sciences, Inc. (NASDAQ: USNA) critic Barry Minkow established the Cheating in China website a few months ago, positing that the company's growth and profitability relied on a complex scheme involving the elicit recruitment of Chinese citizens -- a country where multi-level marketing is generally illegal, and in which Usana does not have a license to operate.

According to a press release issued by Minkow's Fraud Discovery Institute this morning, the Nanning Business Administration Department, "Shuan Sheng" Branch Economic Inspection is taking a look.

According to Minkow, "It would appear that the interrogation notice is interested in both the individual and the company as a whole". On the Cheating in China website, Minkow has posted evidence of Usana distributors seeking to recruit Chinese nationals, in sharp contrast with Usana CFO Gil Fuller's proclamation on a 2006 conference call that "We don't have any associates in China".

Continue reading Chinese government getting interested in alleged Usana violations

Chinese government getting interested in alleged Usana violations originally appeared on BloggingStocks on Mon, 07 Jan 2008 17:42:00 EST. Please see our terms for use of feeds.

Reading through TheStreet.com's ratings this weekend, I came across something interesting:

Nutritional and personal care products developer USANA Health Sciences (NASDAQ: USNA) has been upgraded to a buy from a hold. Its revenue increased by 16.9% in the third quarter compared with the same period last year. Earnings improved to 70 cents a share from 55 cents per share over the same timeframe.

The company's return on equity improved to 184.53% in the third quarter compared with 78.97%, a signal of significant strength within the corporation. This return on equity greatly exceeds that of both the industry average and the S&P 500. USANA Health had been rated a hold since August 2007.

All of that is true and, as investors, we all know that a company that can earn high returns on equity is a wonderful thing indeed. If you don't believe me, take a look at the writings of Peter Lynch, Warren Buffett, Bill Miller, and just about any other great investor.

But at some point, a high return on equity becomes a red flag for fraud and/or an unsustainable business model. Can a company's management/business model be so amazing that the company can earn returns many times greater than industry peers or that market as a whole -- without any particularly important patents or competitive advantages to speak of? Does TheStreet.com really think that a ROE of 184.53% is sustainable? Are Dave Wentz and Gil Fuller (Usana's President and CFO, respectively) really more than eight times as good at deploying capital as Warren Buffett?

I somehow doubt it.

Visit AOL Money & Finance for more earnings coverage

Usana Health Sciences: When great returns aren't so great originally appeared on BloggingStocks on Sun, 21 Oct 2007 11:40:00 EST. Please see our terms for use of feeds.

Great. And one more quick one on the Autoship number going up. I was -- I guess I had in my head that it would probably never go up, that as you became more international, those numbers would -- the mix would change and you probably wouldn't, why would it go up, what happened to make it go up?

Gilbert Fuller

Tim, one of the things that we try to do sometimes more successful than others is create incentives for people to be on Autoship. And just looking at it by country here, it looked like we had the U.S. go up a couple hundred basis points in the quarter versus on a consecutive basis for the second quarter. And that was what drove, since it's the biggest market that we have -- that was the thing that seemed to drive our overall number up nicely. So we are always looking for ways to give folks a reason to have their products on Autoship. It helps compliance. It's a great -- that is, they will likely to keep taking their products and also of course, it's a great cash flow thing for us and also gives us some visibility as to what's coming.

Continue reading What incentive is Usana talking about?

What incentive is Usana talking about? originally appeared on BloggingStocks on Thu, 18 Oct 2007 09:27:00 EST. Please see our terms for use of feeds.

Authorities charge head of MX Factors with fraud originally appeared on BloggingStocks on Tue, 11 Sep 2007 19:10:00 EST. Please see our terms for use of feeds.

Usana Health Sciences (NASDAQ: USNA) claims to be a vitamin company that distributes its products through a multi-level marketing business model. But a report released by Barry Minkow and his Fraud Discovery Institute in March suggested that the vitamins were merely incidental to the illicit pyramid scheme that Usana was operating, and the stock plunged.

But here's something new to consider: Based on my investigation, it appears that some Usana distributors are marketing the Usana "business opportunity" as something else entirely: a tax shelter. For example, a New Zealand Usana distributor with the URL uniquehealth.usana.com writes, "... the fact is a USANA business can save you up to $6,000 plus in a tax return every year. This is not just $6,000 in extra deductions, but an extra $6,000 in YOUR pocket each year - regardless if part-time or full-time." The distributor also gives a list of the potential deductions including automobile expenses, a portion of your mortgage, phone accounts, child care, "pay your kids to work for you, and write it off," and 100% of initial start-up costs.

Uniquehealth is not alone. My investigation of the websites of dozens of Usana distributors found claims of too-good-to-be-true tax savings were widespread. Usana doesn't make these claims on its own website, but the fact that numerous distributors do raises questions about the real reason that people become Usana distributors.

Continue reading Is Usana selling vitamins, a pyramid scheme or an illegal tax shelter?

Is Usana selling vitamins, a pyramid scheme or an illegal tax shelter? originally appeared on BloggingStocks on Thu, 23 Aug 2007 09:40:00 EST. Please see our terms for use of feeds.

In addition to numerous misrepresentations about its own company, the management at Usana Health Sciences (NASDAQ: USNA) has also taken to slandering its chief critic, con-man turned gumshoe Barry Minkow. Now Minkow is fighting back.

In a letter to Usana President David Wentz and CFO Gil Fuller also posted on his Fraud Discovery Institute's website, Minkow writes:

I have struggled over the last several weeks to remain silent in response to the multiple slanderous accusations made by your company in both your SEC filings and public statements. You and your paid supporters have made one false accusation after another, including your
company's statement in the recent Forbes article:
"We believe everything he [Barry Minkow] says to be false," Usana spokesman Joseph
Poulos told Forbes.com. "He's a liar; he's a criminal -- he can't be trusted."
Now Mr. Poulos said this on the record to a national magazine knowing it not to be true because even he believes that everything I have said is not a lie or he would have prevented (just to give one example but be assured these examples could be readily multiplied) Mr. Waitley from resigning from the board of directors as our reporting of the non existence of his Masters degree from the Naval Academy was dead on (again just to provide one example).

Of course, anyone following the Usana story knows that Mr. Poulos is, at best, completely out of touch with reality. I recently did a post comparing him to Baghdad Bob. Minkow also shows the first real evidence of accounting fraud at the Salt Lake City multilevel marketing company. Read the letter to see that.

Oh snap! Barry Minkow fires back at Usana Health Sciences originally appeared on BloggingStocks on Mon, 13 Aug 2007 20:15:00 EST. Please see our terms for use of feeds.

USANA Health Sciences (NASDAQ: USNA) continues to mount one of the lamest defenses I have ever seen amidst swirling allegations of misrepresentations and outright fraud. After New Zealand's National Business Review published a scathing expose of the company's shady business practices, Daniel A. Macuga, Vice President of Network Development and Public Relations for USANA, defended his employer with a passionate letter ... that was soundly and completely rebuked by the paper.

First of all, let's give credit where credit is due. USANA did the right thing in sending someone new out to defend the company after Joseph Poulos did such a bad job that I started calling him Salt Lake Sam.

Be sure to read Macuga's letter and the brilliant point by point rebuttal. if you like watching big companies get it handed to them by journalists, you'll love it.

More USANA Health and Sciences news

Kevin Kelly: "Heard on the Street" knocks USANA
Zac Bissonnette: Oh snap! Barry Minkow fires back at Usana Health Sciences
Zac Bissonnette: Forbes slams Usana Health Sciences (USNA)
Zac Bissonnette: NZ National Business Review slams USANA Health Sciences (USNA)
Zac Bissonnette: USANA has a product, so it's not a pyramid scheme?
Zac Bissonnette: Is Baghdad Bob working for USANA Health Sciences?

NZ National Business Review slams USANA Health Sciences (USNA) originally appeared on BloggingStocks on Sat, 04 Aug 2007 13:40:00 EST. Please see our terms for use of feeds.